Singapore’s home builders have so far been maintain a positive outlook and expecting that the government will likely get rid of cooling measures with regards to the country’s property markets. However, unlike the developers, DBS experts think that is unlikely to be the case. They have suggested that any possible tweaks made by the government, on policies related to property markets, are likely to happen only by the year end.
DBS have also provided reasons that back up its belief. It states, considering the prices of homes in Singapore still remains high, it is pretty early to consider a revision of curbs. Ever since the peaking of prices in 2013, they have only fallen by 6 percent, which is just a tiny drop and hence, does not require any intervention from the government.
The report issued by DBS noted how any expected policy changes would only likely come about at the end of 2015 and that they would likely target the mass market, as this was where the pressure was coming due to an increase in the supply completion.
There was also mention of why authorities would start to make reversals in measures. Interest rates were likely to increase by as much as 1.5 to 2 percent towards the year end and that would be the likely cause. Besides this, there would also be an increase in the number of upcoming housing units, the number being close to 50,900, and is likely to push the market to an evenly balanced state.
DBS pointed out that a tweak of any form was unlikely, owing to the dismal sales and it would rather be insensitive to the overall market. This is another fact that puts DBS’ report in a strong position considering Singapore has upcoming elections within 2015-16.